Wow! The ADP Employment Change surprised on the upside by a ton. Economists were expecting 130K, but the number came in at 206K. JOB CUTS also declined, that’s a good thing. Mortgage apps declined 11.7%, which is not so good.
Central banks all over the world intervened to provide liquidity to Euroland. It IS NOT a solution to the Euro problems, it just provides liquidity. The Federal Reserve and five other central banks agreed to reduce the interest rate on dollar liquidity swap lines by 50 basis points from 100 basis points to 50 basis points and extend their authorization through Feb. 1, 2013. The Fed, The Bank of Canada, Bank of England, Bank of Japan, European Central Bank and Swiss National Bank are involved in the coordinated action.
So, they are addressing fundamental liquidity issues and NOT addressing fundamental economic issues.
The Fed said “The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and
so help foster economic activity,” the statement said.
Sure, yeah, right. How many households you know enter into dollar liquidity swap lines????
MBA Mortgage Applications
Challenger Job Cuts YoY
ADP Employment Change
Unit Labor Costs
Boudin Chaud. Cous Cous Froide. Allons Tigres--Poussez Poussez Poussez
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury
445 North Blvd, 7th Floor
Baton Rouge, LA 70802
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